Introduction to Management Accounting - Accounting Assignment Help

Assignment Task

Subject: Introduction to Management Accounting
Learning outcomes assessed in the repeat assignment:
Describe and discuss the role of the management accountant and their contribution to the achievement of changing organisational objectives
Identify and explain cost and revenue classifications and cost behaviour patterns
Explain and interpret decision-making techniques to evaluate business choices
Apply budgeting techniques and evaluate alternative methods of budgeting, planning and control
QUESTION 1:
The following information relates to Burner Limited, a company that manufactures and sells designer candlesticks in Dublin. The owner and managing director of the business, Mr. Burner, has asked for your assistance as a management accountant to advise him in making some decisions and to help with internal accounting calculations.
Mr. Burner soon tries to influence your work by suggesting that he would have a preference if your calculations could be altered if necessary to help him with the performance management of staff. He also likes to carry on informal meetings with you at the local pub where he likes to discuss company matters over many drinks late into the night.
Mr. Burner recently intends to carry some renovations to his office that the other directors are not aware. The renovations will cost €60,000 and he will use a local builder to carry out the work. He intends to pay the builder €10,000 in cash each month from July to December 2021 and he would like it recorded in the cash budget under the heading of “Repairs and Maintenance.”
Outside the pub one Friday night, he told you to put in €1,000 every month in the cash budget for personal entertainment (including drinks in the pub) for himself and he will pay for it using the company credit card. He suggested that you record the payments as “Miscellaneous Expenses” in the same cash budget for July to December 2021.
Mr. Burner has asked you to prepare a monthly cash budget for the 6 months from July to December 2021 for Burner Limited. For large orders, he is happy to give customers two months credit.
The following information is relevant for the preparation of the cash budget:
Sales Information:
The selling price of a candlestick is €80.
(b)Quantities sold (in units) on credit will be as follows:
May June July August September October November December
1,3001,400 1,600 1,500 2,000 2,400 2,300 2,800
(c)Cash sales are expected to be 1,000 units per month; the remainder are credit sales.
Production Information:
(d)The production cost of the company’s product is €50 made up as follows:
Materials €25 per unit
Labour€15 per unit
Variable Overhead €10 per unit
Production quantities (in units) are as follows:
May June July August September October November December
1,1001,600 1,700 1,500 2,400 2,200 2,100 2,500
(e)Materials will be paid for two months after they have been purchased.
(f)Labour will be paid in the same month as it is incurred.
(g)Variable overheads will be paid one month after they are incurred.
Other business costs:
(h)A bank Loan of €40,000 is to be repaid in August 2021.
(i)A machine will be bought in October 2021 for €6,000. It will be paid for in January 2022.
(j)Fixed costs are €20,000 every month.
(k)The company is expected to be €36,000 overdrawn in the bank on 1st July 2021.
(l)Light and Heat expenses will be €3,500 each month from July to December 2021.
(m)Rent and Rates expenses will be €20,000 each month from July to October 2021 and will increase by 15% on 1st November 2021.
You are required to prepare a report to the Board of Directors which dealswith the points in (a) to (b) below:
Construct an accurate (and ethical) cash budget for Burner Limited for the six month period July to December 2021 showing clearly the cash at bank
position at the end of each month and include a total column.
This budget must be completed using an Excel spreadsheet. (20 marks)

Outline any ethical issues you have identified in this case
and explain how they conflict with the ethics that should pertain to the behavior of a management accountant.
.
Please use a Word document to complete this section. (No more than 600 words)
(20 Marks)

Total marks for Question 1: 40 marks
QUESTION 2

Gloss Limited makes two different kinds of table – the Coffee and the Utility . It has three production departments and two service departments. The budgeted overhead costs for 2021 are as follows:
(€)
Building Cleaning 42,000
Rent and Rates 80,000
Machine Depreciation 65,000
Machine Insurance 18,000
Machine Repairs 30,000
Supervision 85,000
Light and Heat 46,000
The three production departments are named Department A, Department B and Department C. The two service departments are named Department X and Department Y. All five departments are in the same factory and further information and budgeted details are provided below:
Departments
A B C X Y
Floor Area (square metres) 3,000 7,000 5,000 3,000 2,000
Direct Labour Hours 10,000 19,000 11,000 0 0
Machine Value (€000s) 80,000 40,000 40,000 0 0
Number of Employees 16 8 12 10 4
Machine Hours 18,000 18,400 4,600 0 0
Dept. X’s Overheads 20% 50% 30%
Reapportioned
Dept. Y’s Overheads 25% 35% 40%
Reapportioned
Requirement:
(a) Prepare a statement showing the overhead cost budgeted for each department and calculate suitable overhead absorption rates.
(40 marks)
(b) The two types of table are manufactured in the factory. The details of the direct costs and hours required in each production department for one unit of both products is provided as follows:
Coffee Utility
Direct Materials €300 €450
Direct Labour €200 €270
Dept. A 4 Machine Hours 2 Machine Hours
Dept. B 5 Machine Hours 3 Machine Hours
Dept. C 3 Direct Labour Hours 6 Direct Labour Hours
The Classic is sold at a margin of 30% and the Superior is sold at a margin of 40%.
 

This Accounting Assignment has been solved by our Accounting Experts at My Uni Paper.Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
    
Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.